Discount Calculator
Calculate single, flat, and successive discounts. Compare effective savings across multiple discount offers.
Understanding Successive Discounts
When multiple discounts are applied one after another, the effective discount is NOT simply the sum of all discounts.
Example: 20% + 10% successive discount does NOT equal 30%!
- Original Price: ₹1,000
- After 20% off: ₹800
- After additional 10% off ₹800: ₹720
- Total savings: ₹280 = 28% effective discount (not 30%)
Formula for two successive discounts:
Effective Discount = d₁ + d₂ − (d₁ × d₂ / 100)
For three successive discounts (d₁, d₂, d₃):
Effective = d₁ + d₂ + d₃ − (d₁d₂ + d₂d₃ + d₁d₃)/100 + (d₁d₂d₃)/10000
Tip: Always calculate successive discounts on the reduced price, not the original price, to get the correct final amount.
About Discount Calculator
The Discount Calculator computes single, flat, and successive discounts on products, helping both consumers and businesses determine the final price after discounts. Successive discounts (common during Indian festive sales like Diwali, Flipkart Big Billion Days, and Amazon Great Indian Festival) are not simply additive — a 20% + 10% successive discount equals 28% effective discount, not 30%. Our calculator handles all discount types and shows the step-by-step breakdown.
Understanding effective discount is crucial for smart shopping and pricing strategy. Many retailers use successive discounts to make offers appear larger than they actually are. For example, "Flat 50% off" is better than "30% + 20% off" (which is only 44% effective discount). Our calculator also handles GST-inclusive pricing scenarios, comparing deals, and calculating the effective annual discount rate for payment terms like "2/10 net 30."
Key Features
- Percentage, flat, and successive discount calculation
- Effective discount computation
- Deal comparison (Deal A vs Deal B)
- GST-inclusive discount scenarios
- Trade discount and cash discount handling
Frequently Asked Questions
How do successive discounts work?
Successive discounts are applied one after another on the reduced price, not on the original price. For example, with 20% + 10% successive discount on ₹1,000: first discount gives ₹200 off = ₹800; second 10% off ₹800 = ₹80 off = ₹720. Total savings = ₹280 (28% effective, not 30%). The formula for two successive discounts: Effective = d1 + d2 - (d1 × d2 / 100).
Is discount calculated before or after GST?
Discounts should be calculated on the pre-GST (taxable) value. GST is then applied on the discounted price. For example, if the MRP is ₹1,000 with 18% GST, the taxable value is ₹847.46 (₹1,000/1.18). A 20% discount reduces the taxable value to ₹677.97, and GST becomes ₹122.03, totaling ₹800. Discounts shown on the invoice are excluded from the taxable value under GST law.

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